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Hardware does not need a steep upfront costs.
You don't need a nasa pc to run nextcloud, larger businesses routinely trow away machines that are beyond what you need. Chances are family of a member already has some machines they where going to trow away. Your hardware priorities are most cpu cores with as much compatible ram.
The advantages of having your own hardware is you can run multiple local servers and let members experience without additional costs. Imagine it like a private mini internet run by members that only is accessible at location.
I highly recommend proxmox as a server os which has 1 line helper script commands that create a whole nextcloud installation and others automatically, its also very easy to backup those.