Is low cost DAC worth it?

Well, take a cheap cost but well built Emotiva XDA-1 DAC from 2010, it has a discrete audio board (no op-amps), replace the extremely low quality power regulators with 5 Sparkos ($47 apiece), Panasonic power caps, remove the cover and make a plexiglass one and add a Synergistic Research purple fuse (1 amp not to blow) and you've got one $10K+ DAC.  Total parts cost under $1000 plus labor.

I also +1 the Schiit DAC. I use the Modi Multibit. Compared to the Dragonfly -- another inexpensive thing to try, it was a very noticeable upgrade, and well within your budget.There is a lot of internet chatter about the multibit vs. delta sigma, and Schiit says why they choose the multi. Have fun!

@navyachts How dare you bring up a less than a $100 DAC that receives tremendous rave? 😊 Someone playing god father here will be mad at you.

I've got a Schiit Modi 3+ in the den and a Modi 3E in the bedroom.  They do well. But definitely +1 for the Geshelli Labs JNOG2 at double the price. Especially the AKM chip version. My nephew has that in a headphone rig and it sounds great.