As others have said, those 8.5s live behind GNX Regals and F-bodies taking lots of abuse. If you get/have a good donor, with the rebuild you've described, unless you are going to beat on it severely - regularly with tons of torque it should work just fine. Torque matters more than HP yet they are always rated by HP.
Since I don't trust the factory internals, I am rebuilding my 442 with the Eaton Truetrac, Moser 30s, going to a 1350 30 spline yoke and drive shaft, 3.42 [that I know are] high quality gears, and indirectly solving the C-clip breakage safety problem by doing drum to disk in back too while adding some vertical and fore/aft strength bracing to the build.
If I ever get it done . . . [long story I will spare you], I am perfectly confident it will hold up behind my big block. Of course, my donor was free since it came in my 442 but, with $125 LPW bracing for more fore/aft and center strength, UMI claims some added vertical strength comes along for the anti-sway ride with their modern design that clamps the axles forward and up to the frame instead of just tying the 2 lower control arms together which I never understood [??], $150 for blast and coat, $600 worth of high quality internals/bearings. I'm not counting the beefier shaft, drum to disk, or the new sway bar costs as I would do that to whatever rear I decided to use, I will have about $1000 total in just the rear end if I finish the assy, about $1250 if I hire it done and you could cover most of that selling your 2nd 8.5 if it's decent.
Going 9" is the safest thing to do if you are going to the track often and dumping the clutch to slicks with a high torque setup. But, done right that is more like $3500. Watch the nickle/dime adder stuff! I think you can make the 8.5 live . . . on a budget.