the direct answer to your question is yes - as long as the network connectivity exists between your on-premises RDS and the Azure VNet that you are putting the RDS host in, and the connectivity and latency between the networks is low then it shouldn't be a problem.
However, you haven't specified whether the Apps and Services that your users will connect to from the RDS environment are located on-premises on in Azure. If these are primarily in Azure, I would suggest looking at Azure Virtual Desktop as an option. The article here gives details of how you can achieve this using Azure Migrate assessment:
Thanks
Michael Durkan
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