If you see irregularly shaped dry/yellow grass spots by your home, chances are it's not a lack of water or a disease but cottontails. Cottontails are territorial - once they get to like a spot they keep coming back to it.
Inspect the dry patch: if you see small round black droppings, especially when the soil underneath is wet, it's a sure sign the damage is caused by cottontails.
There is no known solution to the problem (other than breeding coyotes ๐), and if you replace the dry grass patch there is no guarantee that the cottontails won't come back to the same spot.