I was looking for a cheap VPS with a dedicated IP in Canada to use as an Iodine DNS tunnel for an upcoming project. I was browsing Low End Box and I came across this deal from IntegralHost:

– 128 MB RAM – 1x vCPU – 5 GB HDD space – 100 GB transfer – 1Gbps uplink – 1x IPv4 – /64 IPv6 – OpenVZ/SolusVM – $8/year ORDER NOW It's located in Canada, which is perfect. $8/year is a bargain.

Here's some benchmarks:

CPU model:  Intel(R) Xeon(R) CPU E5-1620 v2 @ 3.70GHz
Number of cores: 1
CPU frequency:  3699.893 MHz
Total amount of RAM: 128 MB
Total amount of swap:  MB
System uptime:   2 days, 3:21,       
I/O speed:  47.7 MB/s
Bzip 25MB: 5.63s
Download 100MB file: 90.1MB/s

For running Iodine, this will be perfect! They also allow you to use TUN/TAP and PPP which is great if you'd like to use it for Iodine or VPN.