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I know BuyVM usually has $2 KVM slices that have 512M RAM. I have one and it's pretty sweet
Check our offers, we got some. Starting at $13.99/YEAR
https://www.lowendtalk.com/discussion/157061/special-hostslick-com-openvz-kvm-let-deals-starting-at-13-99-yer-nl
I'm using a very cheap @HostSlick VZ in .nl which I got as a special deal and am using it for a dns server and it's been working great.
You could consider the Always Free Tier of Google Cloud Platform.
https://inceptionhosting.com/vpsserversall.html
Some cheap options there.
dirt-cheap Virtono KVM in 5 DCs (check the latency to the test IPs though)
https://www.lowendtalk.com/discussion/156670/european-locations-kvm-1-core-512m-15g-ssd-or-openvz-1-core-512m-20g-ssd-only-9-95-year#latest
Not endorsing personally, since I didn't purchase.
I'm just pointing out the price.
Options of Ubuntu 14.04/16.04/18.04 and optimal price/quality ratio just for $3 monthly or $25.20 annually.
Just re-stocked our Seattle $17.50 512MB VPS.
EDIT: nvm, wrong thread. Wanted to post at a other one.
Does the country matter?
Do you actually need 500MB of ram for a dnsmasq? Do you need a dedicated ipv4? If you can set up the clients to use ipv6 or an alternate port number, you could get a Low End Spirit container.
location or country matters?
We do a 512MB KVM for $17.50/yr.