This is a bit over your budget, but it is the best portrait lens in your price range... at least as far as I am concerned. You can get a used one and it will bring the price down a bit and still be an excellent lens.
It has those features you need for portraits, like close focusing to 1.5 feet, really fast and precise focus, and fantastic image quality. It will also have good low light abilities, in case you encounter that sort of situation.
It is going to be perfect for portraits and anything semi-macro. Get one!
I disagree with the person who said the 50mm F/1.4. I have actually heard some people who have had problems with the auto focus saying that it sometimes searches for the focus point. For half the price, get the 50mm F/1.8. It will be just as great for portraits, the bokeh is very similar, and it doesn't have the same focus problem that some have reported with the f/1.4. It really is almost identical except for the max aperture, so It won't perform quite as well under very low light conditions like the the 1.4, but in reality that is only 2/3 of a stop more light. which isn't that much. and based on your price constraints a little more light isn't worth the money. alternatively, getting the 85mm f/1.8G would also be a great idea. most photographers prefer a longer focal length when doing portraits so the photographer can be a little farther away, allow the subject to feel more comfortable. everybody needs personal space right? it will also make the background or whatever is out of focus, more out of focus. if that makes sense. because of the longer focal length giving softer, smoother backgrounds.
I found that issues I had hunting with my f/1.4 (on a Sony) was actually that my AF sensor wasn't able to operate in the same light conditions the lens could shoot in. I could get a snapshot with f/2.0 in the light I had, but my AF worked somewhere around f/7.1, so it couldn't focus.
Also, with a cropped sensor, a 50mm lens already equates to approximately an 85mm on a full frame camera, so I would not recommend the longer length unless you have plenty of space.
good suggestion, Angela. A bit over budget but worth it if you want pro quality stuff.