Runs fine on a cheap VPS but storage will need to be upgraded pretty soon, bandwidth can also be an issue if your relay gets popular.
I run mine on $5 VPS's tho. Works good but I'll need to upgrade for extra storage soon.
Discussion
I was having issues starting mine on a smaller $5 VM. Once I upgraded to a bit more storage and speed, it started running. I’m thinking of scaling back down w hopes that it keeps running. Not sure yet.