Not every horror movie needs a blockbuster budget. Some of the biggest classics, like The Evil Dead and Halloween, thrived on telling a great story.
Big budgets come in handy when horror filmmakers need gallons of fake blood and realistic makeup effects, but a director doesn't need a lot of money to make a great movie. The elements that really make a horror movie work — palpable tension, concise exposition, claustrophobic camerawork, etc. — are all free of charge in the hands of a visionary director.
Sam Raimi proved this with his own low-budget horror gem, The Evil Dead, which he produced independently for somewhere between $350,000 and $400,000. The movie ended up launching a lucrative horror franchise, as well as the careers of both Raimi and Bruce Campbell.
