Puppet 4 not using custom facts

We are currently running a Puppet 3 system and looking to build out a new system with puppet 4. Currently it is not using our hiera because it is not reading the custom facts that we created. Our hiera.yaml:

---
:backends:
    - yaml
 :yaml:
    :datadir: "/etc/puppet/hiera/%{::zone}"
:hierarchy:
    - "%{::subdom4}"
    - "%{::subdom3}"
    - "%{::subdom2}"
    - "%{::subdom1}"
    - "%{::subdom0}"
    - common

If we run `/opt/puppetlabs/bin/facter` you will not see the "zone" or "subdom" facts. if we run `/opt/puppetlabs/bin/facter -p` they will show up. But running `/opt/puppetlabs/bin/hiera -d messages`, we get this:

DEBUG: 2017-03-09 16:12:26 -0500: Hiera YAML backend starting
DEBUG: 2017-03-09 16:12:26 -0500: Looking up messages in YAML backend
DEBUG: 2017-03-09 16:12:26 -0500: Ignoring bad definition in :hierarchy: ''
DEBUG: 2017-03-09 16:12:26 -0500: Ignoring bad definition in :hierarchy: ''
DEBUG: 2017-03-09 16:12:26 -0500: Ignoring bad definition in :hierarchy: ''
DEBUG: 2017-03-09 16:12:26 -0500: Ignoring bad definition in :hierarchy: ''
DEBUG: 2017-03-09 16:12:26 -0500: Ignoring bad definition in :hierarchy: ''
DEBUG: 2017-03-09 16:12:26 -0500: Ignoring bad definition in :hierarchy: ''
DEBUG: 2017-03-09 16:12:26 -0500: Looking for data source common
DEBUG: 2017-03-09 16:12:26 -0500: Cannot find datafile /etc/puppet/hiera/common.yaml, skipping
nil

We can also see the facts in `puppet facts --debug` This is on a CentOS 7 setup with PuppetDB using postgresql 9.6 Any ideas what else to try or look into?