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 https://masto.host/#pricing-table
@Aswath Haven't found that to be a problem. I don't pay for traffic and have public guaranteed 500mbps on every server. That is a lot of bandwidth and I doubt any instance (<1000 users) will use all of that. Still, I host everything in Cloud and with load balancing you just need to put another machine up and you keep running. Have you experienced problems with bandwidth and Mastodon instances?