Kumber still makes high quality rifles. However, they are probably more than $500. The used to make a bull barrelled Government Model .22 rifle for the Army to practice with but that would really be pricey...
With that said, I think spending as much money on a rimfire that you would spend on a centerfire is well justified. Consider you will probably use the rimfire during every season of the year, whether for practice or for hunting. The ammunition is cheap and easy to get. I use my pet .22 more than any of my other rifles combined.
As an aside, I saved for months to get a Kimber Super America- AAA walnut, skeletonized steel inletted buttplate, express sights, ebony forend cap, 20 lpi checkering, rust bluing- the whole deal. The gun is so damned beautiful, I can't bear to take it into the field. Even a trip to the range causes me anxiety... Later I picked up a Winchester 52 repro and after considerable tinkering, it is suitable for hunting and plinking. No, it doesn't shoot RWS ammo into .245" all day, but if I scratch or ding it, I won't have a heart attack... It's my current pet .22
Consider looking for a used Kimber or Anschutz. I would go for the Kimber 82 if I were planning to hunt with it too. The Anschutz is more competition orientated- a silhouette style rifle might be a good compromise for indoor practice.