If i were you, I'd get the newest Honda City you could get. You might be able to get as new as a 1998 City 1.3LX variant (base model) at the maximum bracket of your budget.
1996 and 1997 model LXi may suit the budget too.

Why Honda City?

It's compact size yet roomy inside. Cabin is airy, beltline is low. Cowl is low as well as dash. It seems like a training wheels. Good driving position is easily available.

Good AC as good as the more vaunted AC King Sentra, will bash Corolla's or 323's AC systems.

It's fuel efficient, 1.3L 16Valves 95HP. Specs is better than a 90hp 1.4L EFi Sentra EX, 88hp 1.5L carb Lancer GL or 67hp 1.3L carb Lancer EL, 70hp 1.3L carb Corolla XL or 75hp carb 16V 323 LX. you may be able to get a more powerful 115hp around 93s GLi or 110hp Sentra SS B13s but they are older and more guzzlers.

Because it is lighter, it has every GO power without consuming too much fuel.

Transmission and clutch is sweet, light and effortless than Corolla's or Lancer's scratchy trannies. Nice bonus: Automatic Transmission is also available. I find the AT variant to be as good as the manual, except for some occasional shift shocks, the transmission is brilliant. Accelerates like a manual transmission and is thrifty in fuel too. Feels like there is no loss in performance against the MT variant.

Suspension is supple yet absorbent. It's a Trapezoidal Link Rear suspension is more or less same with my Mazda 626. Its heads and shoulders better than the strut of Corolla or the beam axle of the Sentra B14. Only the Mulitilinks of Lancer may give a fight to it, but the Lancer's less rigid cabin makes it feel sort of like 'makalampag' unlike the City.
It handles like what it is, a small agile car but very precise on its move. Grip maybe lacking partly because of the standard tires but a bit of an upgrade will greatly help its driving dynamics.

Features, the 1.3LX is much comparable to base XL, EL Corollas and Lancers. Except that it has a much better engine. I think it's the first car to bring EFi engines in the world of boring base 3 box cars. LXi variant though, is comparable to EX Saloon Sentra, XE Corollas and GL/GLi Lancers. Tach, AC, Stereo, Mags (albeit small 13") and front power windows. It may feel cheaper to some point due to thinly padded seats, fewer sound insulation may suggest bare accomodations but this car is about transporting 5 passengers in nice ride, cool aircon and in fastest time without consuming much gas.