Body lifts are fine so long as you keep them under 2". This minimises stress on the mounts and t-case linkage problems etc.
On Jeeps we used to do 1" body lift + 1" motor mounts + a suspension lift rather than just a suspension lift.
Given that the H3 has leaf springs in the rear, you could probably install some form of poly bushing up front and a larger shackle in the rear and get a simple "budget boost" 2" lift without a bodylift, if you prefer?
-C
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