Columbus, N.M. ? This dusty little border town with almost no visible means of support has been seeing something of a boom in the past year: Brand-new Lincoln Navigators and Cadillac Escalades with flashy wheel rims are parked just off the bleak main drag. Homes are selling quickly, sometimes for cash.

The source of this sudden wealth? An influx of Mexican drug smugglers, investigators say.

The smugglers are fleeing the Mexican army’s occupation of the town of Palomas, on the other side of the U.S.-Mexico border fence, and settling in Columbus, where there has been a law enforcement vacuum. The four-man police force in Columbus has turned over seven times in three years because of scandal or apathy.

“We know the names of the people,” said Luna County Sheriff Raymond Cobos, who is based in Deming, 35 miles away. “I know that if I were a person involved in criminal activity, whether it’s drug-related, human smuggling related, I certainly would welcome the absence of police.”

So far, Columbus has been spared any violence, even though the sheriff’s investigators estimate 10 percent of the population of 2,000 may be involved in illegal activity.

“I would say greater,” said resident Robert Odom. “If a person wanted to, they could make a good living in Columbus — not legally, but they can make a lot of money if they are willing to risk going to jail.”

Ranches and farms in the area are the largest legitimate employers, along with the few shops and cafes in town. Officially, the median income is less than $15,000 a year, a sum that is hard to reconcile with the sudden prosperity around town.

“There’s a lot of people who don’t work but have a lot of possessions,” Odom said, adding that he often spots local teens driving fancy new cars. “They have hubcaps that cost more than my truck.”

Real estate agent Martha Skinner, a former Columbus mayor, said she had her best year in 2008, selling about $500,000 in property in town, some to locals, some to Mexican buyers. The median home value in Columbus is about $52,000.

She said she had a few cash transactions where she couldn’t help thinking, “Well, where did they get this money?”

Some residents and local officials say that without the illegal cash, the town might not survive.

Last month, Columbus got a new police chief, Angelo Vega, who said any illegal activity will be met with jail time. “This is a new day for Columbus,” he declared.