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If you want to work with an unmanaged solution…

Amazon offers new customers a year of free service for one micro instance.

I am currently hosting a couple of low traffic wordpress sites. No problems so far, up 147 days without a restart.

I mostly followed this guide to configure my server.

Because of the low specs of the micro-instance, I had to edit some config files to limit the maximum number of processes nginx and php5-fpm can open.

If you go this route, you should probably use Apache for the webserver rather than nginx. I find Apache to be more user friendly and there are more online resources/tutorials for Apache, as well as gaining use of .htaccess