Depending on your load (ball&patch or bullet + powder), 1/16" difference, as Herb noted, should be about right - for a 1/2 stock, 28" to 34" bl. A longer barrel might need a bit more elevation, but again, load and range for the zero also come into it.
With some rifles, equal heights are right.
With peep sights, most people use a bead - ball or bullet hits in the centre of the bead for a hunting rifle - not it's top edge. With a blade front sight, the impact should be the top edge.
With failing eyes, a bead is usually the more accurate sight design as even if it's fuzzy- they are sighted in so the ball or bullet still hits in the middle of the bead. An indistinct/fuzzy or multiple front sight blade top edge causes high or low misses.