Nick,
Based on the photo, I'd say your a little low compared to a new axle that would have come on that trailer. Regardless, my guess the axle rubber is hard and should be replaced anyway. Nrgtrakr has a good link to Andy's write-up on testing to see if they are good.i have to say, I had axles on two trailers that from looking at them they had the correct ride height, but both were shot. Really need to test to see if they still can flex.
Enjoy,
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Paul Waddell
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