The planning of urban bus-only lane networks is an important measure to improve bus service and bus priority. To determine the effective arrangement of bus-only lanes, a bi-level programming model for urban bus lane layout is developed in this study that considers accessibility and budget constraints. The goal of the upper-level model is to minimize the total travel time, and the lower-level model is a capacity-constrained traffic assignment model that describes the passenger flow assignment on bus lines, in which the priority sequence of the transfer times is reflected in the passengers’ route-choice behaviors. Using the proposed bi-level programming model, optimal bus lines are selected from a set of candidate bus lines; thus, the corresponding bus lane network on which the selected bus lines run is determined. The solution method using a genetic algorithm in the bi-level programming model is developed, and two numerical examples are investigated to demonstrate the efficacy of the proposed model.