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The maximum altitude limit when flying a drone near a building or structure within a 400-foot radius is indeed 400 feet above ground level (AGL). This rule is established to ensure the safety of operations and to maintain a buffer zone around populated or sensitive areas. The idea is to limit drone flights to a height where they are less likely to interfere with manned aircraft and to minimize risks associated with flying near structures, where surroundings can be unpredictable, such as in urban environments with various obstacles.

When operating within this proximity, staying at or below 400 feet AGL helps pilots avoid potential collisions with other aircraft, which may be operating at higher altitudes, along with promoting compliance with regulations that apply to drone pilots. This altitude restriction helps to ensure safer airspace for all users and limits the impact of drones on people and property.

The other options present higher altitudes that do not align with FAA regulations for drone operations near structures, which prioritize safety and effective air traffic management. By adhering to the 400-foot limit, operators can effectively navigate and comply with the specific guidelines set for flying near buildings and structures.