Well the first question is, do you really need transcoding? Unless you're using a pi 3 as a client / media player, anything else you could plug into your network should be fast enough to play most media.I have an old HP MicroServer N40L which is definitely not strong enough for transcoding either but I do have a GT710 that I can pop in there and configure that as the transcoding hardware if I wanted.
I direct stream to my Ematic TV box which seems to handle up to 4k content just fine without transcoding.
The Pi is a nice thing to play around with though, and they are immensely useful. I have a Pi 3B that I have a few services on that I manage with Docker. Currently, it hosts my Heimdall application dashboard, Pihole, a VPN server and a CUPS server but prior to the NAS I also had Jackett, Transmission, Lidarr, Radarr, Sonarr, my Unifi Controller, Smokeping and Plex running off a Pi4B and it had room for more services.
I'd maybe look at getting a Lenovo Tiny to use as a Plex server, as they have Intel CPUs that support transcoding with Intel QuickSync (https://en.wikipedia.org/wiki/Intel_Quick_Sync_Video) and there is a nice diagram explaining what chipset generation you would need for the codec you use.
You can also look at an Intel NUC with the 8th or 10th gen CPUs installed. I had one with an Intel 8109u and it was utterly brilliant for the price I paid
If you definitely want to transcode then maybe something from Odroid? Should still be cheaper than the likes of a NUC, and much more power than a Pi.
Eg. https://www.hardkernel.com/shop/odroid-hc2-home-cloud-two/
(I think delivery used to be around $20 but I haven't checked recently. That's standard for most delivery to SA tho).
This one even has 2x SATA onboard.
ODROID-HC4 – ODROID
www.hardkernel.com
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