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Reference: AWS CDN Instance connection limit, EC2 Bandwidth Limit .
Budget hosting usually means hundreds of sites or dozens of VPS / reseller accounts hosted on same server.
For most integrations that involve video recording and archiving, HTTP and RTMP must be hosted on same physical server so web scripts have access to the video files saved by rtmp server for management and conversion.
The hardware configuration depends very much on the number of website members and visitors and also on website settings and target, so we cannot give you exact requirements.
A video card with good GPU can greatly increase video processing power.
A VPS (Virtual Private Server) can be used for live video streaming project development and testing but is not recommended at production times. Multiple VPS (Virtual Private Servers) share same server with same hardware (disk, CPU, memory, connection).
On high traffic events, servers could handle spikes up to double or more of this average bandwidth only if network load is low at that moment.
For good performance and reliability average use should be maintained under 35-60% of maximum connection capacity.
In example a dedicated server with 1000Mbps connection should be allocated when 500 Mbps streaming is expected. Because there's additional data used in addition to streaming, like other interactions, networking packets info, connection management traffic, often other services like web/mail/dns on same server.
To host hundreds or thousands of streams simultaneously, servers with 1000Mbps connection and at least 8 Gb RAM are required (16-32Gb recommened if hosting both web and rtmp).
It's important to have the server in a reputable data center with high connectivity so all your users can connect to the server at good speed, from their different networks and providers.