I would recommend the Ricoh GR-D series - absolutely stunning little cameras. Small, light, tough, prime lens (aka fixed lens - no zoom - fewer elements so better quality, lighter, smaller etc). Depending on what model you get, they come with a 28mm (wide-ish angle) lens, f1.9 (really shallow depth of field i.e. subject is in focus, background is blurry) and good low-light performance. Battery lasts forever, too. And the controls are top-notch. And they shoot in raw or jpeg with hardly any buffering time.
You can get one secondhand for the top end of your price range... but they are cult cameras, so prices on ebay and the like are often quite high.
Read more here:http://erickimphotography.com/blog/2013 ... otography/
No, I don't work for Ricoh!