My hometown, where I started taking tae kwon do back in '94 has only around 1500 people in it. It can be done, the instructor lived 45 minutes away, which forced the school to close down. Now there is a karate instructor that teaches and has some good sized classes. Both of the instructors taught/teach out of the high school or elementary school. You shoul have a chat with the principal or superintendent....you could get a lot of space really cheap or even free...