I'll second the suggestions to consider a Bluesound Node 2 and, alternatively, the Denafrips Ares, for the budget mentioned.
I recently acquired a Vault 2, but have a Node 2 coming on the BBT, today. I suspect they will sound identical. The Vault 2 sounds better than I expected it would and much better than the DAC in a Sonos Connect. It will, at least until another upgrade bug strikes, be used as a transport, however, in a $20k+ system. Will probably get another one for a smaller system using its own DAC at some point fairly soon.
Just also acquired the Denafrips Ares. It sounds much different from other inexpensive DACs (including the internal Sonos, Bluesound, and Oppo 95). To my ears, better. Certainly "more clarity and warmth" than particularly the Sonos. So, at least with a small sample, with regard to the comments about all cheap DACs sounding the same, I strongly disagree. It is likely to taste and may be just the r2r thing, but, to my ears in my systems, the Ares sounds very different. For today, have a Sonos connect running Tidal Hifi and the library in the Vault 2 from wifi, into the Ares, into an Inspire pre, into an Inspire SEP, into Omega 3 HOs. It's not bad, at all. The Ares makes a huge difference over the Sonos DAC.
Not bashing Sonos--I think it's fantastic for what it is.