For n = 1, the relationship has to hold: PV = constant for all points during the compression cycle.
For this to happen, temperature has to remain constant. For temperature to remain constant, heat must be removed during the compression cycle. A completely isothermal compressor would have PV = constant and therefore n=1.
For a perfectly isentropic process, n = k.
So for 1 < n < k, heat must be removed during the compression process. This isn't so unusual for reciprocating compressors, especially very small, slow moving ones. And there are numerous patents for other types of isothermal compressors which use a fluid such as water as the 'piston' for the machine. So yes, n can be between 1 and k for any compression process that removes heat during compression, but does not remove so much heat that the temperature of the gas ever drops below it's initial starting point.