8-iron tee height.
Flush or ¼ inch. Most golfers go flush.
The short answer
Flush with the mat, or ¼ inch (6.4 mm) ball-bottom maximum. Use the 2-iron SKU pushed nearly into the cup if you want a lower setup.
Why
An 8-iron on a Par 3 plays well off the deck. A tiny tee just removes the worst-case fat shot risk; that is the only reason to use one at all.