It seems like most people are suggesting micro mics.
The MTII provides 48v phantom on its 1/4" TRS inputs, so you could look at full size condensers. Someone has a pair of Audio-Technica AT4041's in the yardsale for $300. The AT4041's are nice mics, I used them for awhile and made many fine tapes using them.
You could also get a pair of Avant/Avantone ck-1 mics. The cardioid only are about $200/pair, and the 3-capsule version with cards, hypers, and omnis are about $300 a pair. Also Studio Projects c4's are in the budget range as well.
Besides mic stand, cables, t-mount, you could just run condenser mics straight into the MTII, and then upgrade to an external mic preamp later if/when you decide to put more money into your rig. Esp since you have a louder band, I don't think some of the noise problems people are concerned about going mic in on the MTII would be too much of a concern.