Shower components, like rain heads, are often grossly overpriced. There is nothing very sophisticated about the design of rain head shower heads that would cause them to command a big premium, but I have seen some for sale for over a thousand dollars that did not look any better, were not built any better, and did not perform any better than ones for $100.

There are many styles of rain heads and I don't know your design tastes, so I am not going to recommend a specific one. I suggest you go to Amazon.com and build.com and put "rain head shower head" into the search box. You may be surprised at what you can get for your money from well-known manufacturers. The reviews can also be very helpful.

When I was looking for a replacement shower head last year, I was prepared to spend quite a bit. However, after several hours of research online, I settled on a $42 Delta-brand solid brass shower head that turned out to be absolutely perfect for my needs. You, too, can find a deal for a rain head and arm for a lot less than $500.

Check Costco.com

We have the Moen Velocity and I highly recommend it. It's well under your budget, and has 2 settings, one for light rain, and one a bit more concentrated. It has held up well for 2 years now, and is well under your max budget.

Delta might have one that fits your budget.

This is what we have and I love love it still going strong 3 years later. In fact we are putting it in the next house!

Here is a link that might be useful: Hansgrohe rain shower

Try riobel. They have good quality with not so crazy prices.

I don't have a rain head from them, but I do have a shower system that has seen constant use for 5 years and we are really happy with it. I would have gone with Hudson Reed again for this BR but I wanted brushed nickel and almost all of their fixtures are chrome.

Here is a link that might be useful: Hudson Reed shower heads with arms

I put in a 12" rain head years ago. An Aquabrass 2512. Chrome. I don't recall what I paid for it, but it wasn't exorbitant. Probably about $175.

Not sure what style you are looking for, the 2512 is a bit bulky. But it's a good head, no issues, I'd install another with no worries.

I just did a quick search and I saw it for $245.

I have that same Hansgrohe one and love it!