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After doing more testing, I decided to go ahead and provide shared hosting for Mastodon instances.
This will be a trial but unless something goes horribly wrong, I believe that I can price it at €5/month for an instance of up to 100 users.
This can greatly diminish the cost of running small instances and remove the technical barrier from everyone who wishes to run their own Mastodon Instance.
Let me know what you think masto.host/#pricing-table

@hugo Do you intend to limit instance to 100 users or just set >100 as unsupported/you're on your own now?

Hugo Gameiro @hugo

@tankgrrl I would say that if you are over 100 users you should upgrade or you will start noticing a degradation of performance.
But currently this is a bet and I need volume of usage to know if I can increase that number. Also, each instance is unique and an instance with not many concurrent users can work well over that and just need extra space. Time will tell how plans will adjust