Yeah, small hosting biz can still make money in 2026, but its not really buy a server and get rich vibes anymore.
The play is usually finding a small niche, local businesses, devs, small shops, creators, etc., and giving them setup + support, not just raw hosting. Most ppl dont wanna deal with DNS, SSL, backups, emails, migrations and all that tech headache, so thats where you can actually make bread.
For infra, Id start lean instead of buying some huge server upfront. Something like LuxHost VPS/reseller setup can be a decent base: solid enough to host clients, not crazy expensive, and you can scale once youve got real customers.
So yeah, money is there, but the win is service + trust, not just reselling disk space