The rule doesn't state that the steaming light has to be above the sidelights although that makes sense.
Just to flesh things out a little (Inland Rules):
33 CFR 84
(g) The sidelights of a power-driven vessel shall be placed at a
height above the hull not greater than three quarters of that of the for-
ward masthead light. They shall not be so low as to be interfered with
by deck lights.
(d) The masthead light, or the all-round light described in Rule
23(c), of a power-driven vessel of less than 12 meters in length shall
be carried at least one meter higher
than the sidelights.
(a) “Masthead light” means a white light placed over the fore and
aft centerline of the vessel showing an unbroken light over an arc of
the horizon of 225 degrees and so fixed as to show the light from
right ahead to 22.5 degrees abaft the beam on either side of the ves-
(b) “Sidelights” means a green light on the starboard side and a red
light on the port side each showing an unbroken light over an arc of
the horizon of 112.5 degrees and so fixed as to show the light from
right ahead to 22.5 degrees abaft the beam on its respective side. In
a vessel of less than 20 meters in length the sidelights may be com-
bined in one lantern carried on the fore and aft centerline of the ves-