I have wanted to setup my own server to host websites for quite a while, although looking at the prices from VPS providers such as Rackspace and Linode; the prices range from around $15 and $20 a month, too much for what I wanted to pay. My sites don't get enough traffic to justify that amount of money.
Enter Digital Ocean, for $5 a month they offer (at the time of writing) 20GB SSD, 512MB RAM, 1TB bandwidth, static IP and SSH access along with support and great community support.
I have been with Digital Ocean for around a month now and haven't regretted it. I host three websites on the server; ryanfitton.co.uk, ryanfitton.com and bethanyjackson.co.uk. Each is setup as a virtual host with the domains from my domain provider (1&1) using DNS to translate back to the server's static IP.
The Snapshot and Backup features they offer are great, and have saved me a couple of times for when I have changed a couple of config files.
Overall I would highly reccomend anyone looking for a VPS to look at Digital Ocean.