Thats where mine was. I would always see the gauge rise way up to around 210 or so the fall back to thermostat. It did this overtime it was parked and had time to cool off. Once I moved sender, the temp always stays right at thermostat. I believe the water is much hotter right at the cylinders but mixes with cooler water coming around the back side of the head, by the time it all gets to the thermostat housing it has averaged out. My housing had a port that wasn't drilled or tapped, but that was easy enough to fix.
