We use an Eddie Bauer 3-in-1 tent. It's tall enough that you can not only sit, but stand, in it. It can comfortably fit me, my husband, and our three kids with air mattresses and still has more than enough room for our stuff. It's cool enough during the summer. We got ours for $200 at Target, so it's well within your budget. The downside is that it can be quite chilly during the autumn and winter months (if you plan on camping during this time). A heater can help.
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