Currently have two projectors, both from secondhand stores. One is new-ish, one vintageāboth were under $20. Our go-to of the pair for movie night is the old office projector, probably a decade old but itās so good. 2000 lumensāfor comparison, a movie theatre projects with 50K lumensāand we plug a firestick in to make it āsmartā (an old firestick, my tech-savvy partner says a newer one might not work). The more recent projector (VivImage, not sure what model but they go for about $100 new) doesnāt have the same oomph but for watching the game or an occasional movie it works just fine. All of which is to say you can probably find something way cheaper than $500 to get a sense of what works for your space and adjust accordingly, particularly if you check out used options.
I personally love it. For gatherings and low-tech nights itās nice not to have a big screen taking over the room, and for watching movies itās awesome to have a screen the size of our wall. You do need to figure out where the projector will sit and arrange around it, and a pro or con (depending on how you look at it) would be that you really will only be able to watch things in pitch darkness.
Best of luck with your new setup!