Yorkshire Terrier Rescue

I have been searching for a yorkie female puppy around RI and Mass for my Grandmother. She lost her dog Daisy last year to cancer and is in need of a new friend. I am not looking to spend more then $500.00 .She is home all the time and can provide a loving home. Any suggestions are grately apperciated.

I'll go ahead assume you've spoken to your grandmother about getting this new puppy as that's the correct and responsible way to go about it. Be sure to include her in the process as well, dogs are quite personal, and everyone wants to pick their own pup.
You can try petfinder.com, your local pound, the classified section of your local newspaper, a Yorkshire Terrier rescue group, or look for a reputable breeder in your area (certainly not a "cheap" option, but always a good option to keep in mind).
You can find breeders through these sites:

http://www.ytca.org/

http://www.akc.org/breeders/index.cfm

Some rescues:

http://www.yorkierescue.com/

http://www.unitedyorkierescue.org/

http://www.yorkierescueme.com/

http://www.barkbytes.com/rescue/yorkie.h…

A quick google search will also pull up more Yorkshire Terrier rescue groups for you as well. You can also add your state to the search to get more results for your area.
Hope this helps, and good luck in your search.