Is horror allowed as a genre to be used in the jam?
It's a venn diagram sort of thing, to my knowledge. Not all horror is NSFW, but there is some overlap.
Basically the big thing to really worry about is excessive amounts of bad language and gore. (And, you know, "18+" content). Just, you know, remember that a non-adult could play your game, or may well have to play it as part of the rating process.