I'm running a Hollywood Racks Destination 4-bike rack with an 8" extension and it fits perfectly and is plenty stable with 4 bikes mounted.Revisiting this older post as I'm looking for bike rack options.
In general, I believe hitch extenders reduce the tongue weight capacity of hitches by about 50% (+/- depending on the exact length of the extender). The Bronco hitch has a tongue weight rating of 350 lbs so any extender would only allow your bike rack or basket to be 175 lbs (rack and cargo).
Very happy with this setup. Solid, stable, doesn't weigh a ton, folds up if/when I want it to, and didn't break the bank.
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