Home Occupancy Clause and Renting

I purchased a single family house (FHA loan) back in July 2017 and my family (spouse and 5 kids) moved in at this time. However, after living there for 4 months we realized the House was way too small and the neighborhood/school had issues causing my kids to get into trouble, have self esteem problems and many bullying issues (parents and kids alike). We decided to go ahead and rent out the house and then proceeded to rent another house in the same County. We are actually taking a $250/mo loss on the rental but money isn’t an issue. While working on our taxes we just noticed the 1 year residence requirement for FHA loans. We are panicking since we never thought to check this (I only checked HOA guidelines on renting). We only lived there 4 months. We are looking at a refi/sale but the house already lost value. Should I contact the lender and let them know? We don’t want to appear like we are hiding anything as we had no intent to rent this when we bought. Will they drop the loan? I know ignorance is no excuse so I understand that I should have checked, not debating that.

Home Occupancy Clause and Renting