Regulatory consideration: FAA rules limit recreational drone flights to 400 feet (121.9m) AGL in uncontrolled airspace. Setting RTH altitude above 400 feet causes the drone to violate the altitude ceiling during an emergency return. The practical safe range for RTH altitude in uncontrolled US airspace is 80-120m AGL — high enough to clear most obstacles, safely below the 400-foot ceiling.
In controlled airspace (Class B, C, D, or E with surface extensions), your LAANC authorization specifies an approved altitude ceiling. Confirm your RTH altitude stays within the approved altitude for your authorization. A RTH event that causes the drone to climb above the LAANC authorization ceiling is still a regulatory violation even though it is an emergency. Fly conservatively enough that you avoid the airspace in the first place.
For the full explanation of how RTH works including homepoint setting, all three RTH triggers, and precision landing, see the guide on how drone Return to Home works.