Ten years ago the Hollywood idea of a low budget film was ten to twenty million dollars. Now they actually produce films in the million dollar range that turn a huge profit. These films (usually horror or thrillers or faith based) are produced independent of studio involvement. These films can sometimes fool the screenwriter into believing that because of box office success they are Hollywood films and come with the massive up front paydays we have read about.
Understand that if you are writing a low budget film that you are going to be dealing with a indie director or producer and not a studio. The pay is small, but the opportunity is amazing. Write the next Get Out, War Room, The Witch or Paranormal Activity or It Follows and your future in the industry could be very bright. Just remember that the rules still apply when writing one of these films. Limit the cast, limit the locations and limit the effects that are required to tell the story and you have a low budget film script.
Even though the M. Night films The Visit (5 million to produce) and Split (9 million) were made by a Hollywood film maker these films are the prototypes to follow as far as crafting the low budget screenplay. If you were to illuminate the High price director and talent both films could have been produced for a forth of those budgets.
This post is about Hollywood, but I want you to keep in mind that being able to write a low budget screenplay will be a skill that you will need no matter where you end up working in this industry. To learn more I have a great audio book that will soon be available soon. That you for your time and good luck.