I have a localized rash near the right side of my stomach, right next to my belly button. it consists of some small, slightly raised red bumps.

Viral: I suspect an eruption due to a viral infection which could be mild shingles(herpes zoster) or herpes simplex. Since these would be treatable, I recommend that you be examined by a physician or dermatologist for diagnosis and treatment.

Periumbilical rash: May be folliculitis (bacterial rash) eczema or zoster- shingles -herpetic rash- this is usually associated with pain and treated with acyclovir and sometimes prednisone if severe pain, rarely could be fungal. Follow up with doctor