Speakers for Hip Hop and vocal???

"I know hi fi speakers are not really meant for hip hop"

That's some wrong thinking there!

I would rec. splitting your budget between a sub and satellite, ie.

ATC SCM12's and Rel Strata, or a Velodyne F1200, Paradigm
Reference 1500?, you get the idea. Add a Behringer Feedback destroyer ($90) to Flatten out the room bumps and EQ the crossover point between the satellites and the sub. Done. Reference system on a budget... Add 100watt integrated and CD player

++++My Milkshake brings all the boys to the yard,
And their like "It's better than yours"
Damn right, It's better than yours,
I can teach you, but I have to charge +++++

Hip Hop has its challenges, but no job is difficult if you buy the right tools.

PS: that system will play jazz as well as any (refined?) audiophiles speaker.

I would recommend Snell B-Minors. There is a pair for sale on audiogon right now. I have a pair myself. They are classic rock'n'roll speakers and will give great bass for hip hop and the vocals are beautiful. They play everything well. A true classic speaker. The only "problem" may be their size in a small room, though I wouldn't let that hold you back. They are rarely for sale. The price for this pair is right and within your budget. The only issue is going to be packing and shipping.

http://cls.audiogon.com/cgi-bin/cls.pl?spkrfull&1157736632

a mint used pair of klipsh heresys

Klipsch Herressy (not version II's).
Way less than your budget, lotsa bass, efficient as hell, and you will be less likely to explode when someone spills beer on them.

Headphones?

Headphone would not work since I might occasionally have parties.

Enough headphones for everyone?

In addition to Audiophile recordings, and mainstream jazz, I listen to 80's R&B, 80's & 90's Rap, and ANYTHING else that keeps my attention. For your listening taste Reference 3a DeCappo loudspeakers should be on your list to audition. I had my pair of Reference 3A "Studio Masters" for three years and they played the aforementioned music superbly. My biggest tube amp was 40 watts. I also used a 30 watt solid state amp. With either, the bass was tremendous! Vocals and midrange presence was quite impressive. They take up little space due to stand mounting. These speakers do great with vocals and bass heavy music. Good luck.

Onlywax